Startup Financing
Startup Financing
Image credit: Peqsels

In startup financing, common arrangemens include convertible preferred stock and convertible debt. These financing arrangements are typical in seed capital and venture capital financing rounds. At the seed financing stage, convertible debt is more common. In venture capital rounds, from Series A financing onwards, the startup more often uses convertible preferred stock.

Convertible Debt

A convertible note is short-term debt that converts into equity under certain conditions. In a seed stage financing round, investors usually loan money to a startup. The debt will automatically convert into equity, usually preferred stock, when the startup progresses to a Series A round. …


Tech Startups
Tech Startups
Image credit: Peqsels

Research shows that about 70% of tech startups fail before they can grow and sustain themselves.

A primary reason for this is usually that they failed to produce a service or product that consumers needed. With unlimited access to innovative technology and relatively low barriers to entry means, it’s pretty easy to build a product. That also means it’s easy to build a product that nobody will buy.

Forbes says that there are other reasons why tech startups fail. Some bleed cash and run dry sooner than expected. Some fail because they don’t have a solid team backing their product…


Pool
Pool
Image credit: Peqsels

Bunim Laskin says that as the oldest of 12 children, growing up he was tasked with keeping his younger sisters and brothers occupied and entertained. Laskin saw that one of his neighbor’s pool frequently went unused. So, he asked the owner if his family could use her pool. In exchange, he offered to help with the costs of maintaining the pool.

A Start Up is Born

Tech Crunch says in a recent article that fairly soon, Laskin had five other families in the mix with the same set-up: that pool owner had six families covering a quarter of her expenses. As a result, the neighbor…


Venture Capital Profits
Venture Capital Profits
Photo by Austin Distel on Unsplash

Venture capital firms have recently been experiencing windfall gains at a record pace. While the venture capital industry is defined by a few big wins offsetting a portfolio of huge losses, the number of investments resulting in multi-billion profits has soared recently. Many firms are on track to have their best returns since the dot-com boom in the late 1990s.

These gains are being fueled by investments in fast-growing tech companies, especially those with recent initial public offerings (IPOs).


Artificial Intelligence
Artificial Intelligence
Image credit: Piqsels

The EU is spearheading an ambitious effort for regulating artificial intelligence technology. The European Commission unveiled the comprehensive set of proposals in mid-April. Among other goals, the framework seeks to limit police use of facial recognition. It also would prevent artificial intelligence deployment in ways that cause psychological harm or exploitation.

It marks one of the largest efforts by any Western government to set standards on the development and use of artificial intelligence. Violations for usages of artificial intelligence deemed high risk could face steep fines. …


Proxy Voting
Proxy Voting

If you own shares in one or more publicly traded companies, you have likely come across proxy voting. As a shareholder, you are entitled to cast your vote on certain matters presented at a company’s shareholder meeting.

At a minimum, public companies must solicit votes from their shareholders at least once a year to vote on matters at their annual meeting. The issues typically up for consideration at annual meetings include the election of directors, CEO compensation, and auditor reports.

Companies can also host special meetings to invite shareholders to vote on major issues that occur between annual meetings. The…


Grab Ride Sharing App
Grab Ride Sharing App
Photo by Markus Winkler on Unsplash

Grab Holdings Inc., the dominant ride-hailing app in Southeast Asia, announced in April 2021 that it would be merging with a special purpose acquisition company (SPAC) that will value it at $39.6 million. It marks a milestone for the car sharing app startup, which has seen its valuation more than double in the past 18 months.

Singapore based-Grab announced that it would merge with Altimeter Growth Corp., a SPAC sponsored by Silicon Valley venture capital firm Altimeter Capital. The nearly $40 billion deal would make it the largest SPAC deal to date.

Explosive Growth

Grab started as a taxi-hailing app in 2012…


N-Word
N-Word
Photo by Andre Hunter on Upsplash

Dinah PoKempner is the former general counsel for Human Rights Watch. She recently taught a class on hate speech in legal proceedings for the Institute for the Study of Human Rights. The adjunct instructor in repeatedly said the N-word while sharing an anecdote with her class.

The April 1st class concerned the “comparative legal treatment of hate speech,” and discussions touched upon the propriety of legal action against hate speech.

PoKempner shared an anecdote aimed at demonstrating a broader point in the class. She explicitly used the N-word several times. She laughed and switched between “voices.” Students tried unsuccessfully to…


FTX Crypto Exchange
FTX Crypto Exchange
Image credit: Peqsels

FTX, the cryptocurrency derivatives exchange that processes approximately $10.7 billion in trades daily, has become a force to reckon with. It is one of the fastest-growing cryptocurrency exchanges in the world. Sam Bankman-Fried, the 29-year-old billionaire behind FTX, has an estimated net worth of $8.7 billion.

FTX specializes in the trading of crypto derivatives, but it also has rapidly pushed into new markets. The exchange offers futures, leveraged tokens, tokenized stocks, and a host of other tradable assets. The company’s headquarters is in Hong Kong. That allows it to operate in a less regulated environment than the United States.

FTX as a Platform

FTX…


Dogecoin
Dogecoin
Image credit: Aranami on Flickr

Dogecoin, the cryptocurrency whose creators considered it as a joke in 2013, has since skyrocketed in value and popularity. Its value has risen over 8,000% just in 2021 alone. At some points this year, the total value of all circulating Dogecoin in the world has surpassed $50 billion. Dogecoin’s $50 billion market value makes it larger than some of America’s top companies including Marriott, Ford Motor Company, and Kraft Heinz.

Dogecoin Follows Gamestop?

The cryptocurrency’s rapid rise follows the meteoric rise of other assets in 2021. Most notably, it has parallels with the GameStop saga that shocked markets a few months earlier. Propelled…

Carpenter Wellington PLLC

Ryan Carpenter serves as Attorney and Managing Director of Carpenter Wellington. Ryan advises clients across a broad set of corporate and commercial matters.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store